Texas Promulgated Contract Forms & Addenda Final
Exam 2023 with complete solution
Which of the following is an example of a Bilateral contract?
A Promise in exchange for a promise - Purchase Contract.
Unilateral Contracts - Listing Agreement, Buyer's Rep, Option Contract
Who is responsible for filling in the effective date, who, when & what?
Broker. Between the buyer and the seller, The date on which the communication was
made. The date of initialing and signing of the parties. The last party to initial/Sign fills in
the day. Broker. Last party to accept must communicate back to other party & fill in the
date
What is a legal proceeding brought by a party to a contract against another party to
compel action called for in the agreement?
Breach of a contract, one-party defaults, sues for specific performance, seek other relief
- arbitration, mediation, injunction to sue for compensatory Damages.
If a seller fails to provide the buyer with the seller's disclosure of property condition as
required by Section 5.008 of the Texas Property Code, what is the status of the
purchase contract?
Voidable at the option of the buyer. Voidable by buyer any time prior to closing and the
earnest money will be refunded to the buyer.
Which term identifies the substitution of a new contract for an existing contract?
Novation
When using a Power of Attorney to transfer title to real property?
Attorney-in-fact - Legal description and the subject of the authority
Who must convey to the principal all known information that would affect the principal's
decision to accept or reject offers?
Licensee - the listing agent/selling agent
When a legally enforceable promise is exchanged for a legally enforceable promise?
It is a Bilateral Contract.
If the seller has already sent a counteroffer to a prospective buyer and then receives
another offer that is even better, the seller:
Withdraw the counteroffer first then consider new offer
Which law requires the contract for real property to be in writing and signed to be
enforceable?
Statute of Frauds
To have a valid real property contract, something of value must be exchanged. This is
called:
Consideration
When may a potential purchase's offer to buy real estate be withdrawn?
at any time before it's accepted
Which of the following is NOT addressed by a TREC-promulgated contract?
Lease with an option to purchase. Lease purchase - new Condo contract
When is a financing addendum not required?
When the buyer pays in cash. When third financing addendum is waived
, Items that are preprinted in paragraphs 1 and 2 of the contract include all the following
except?
Exclusions
When will the third party financing addendum credit approval not be used?
1. all cash
2. When Third Part Financing contingency is waived
Which addenda will the Purchaser use when purchasing a property for cash?
None- no addendum will be used.
Which addendum is commonly used in a transaction involving a 90 percent fixed rate
loan with PMI?
Third party financing addendum.
What form is used if the buyer wants the seller to leave the refrigerator with the home
after closing?
Non-- Reality items addendum
In Third party financing addendum for credit approval, what should the Cap On interest
rates?
MARKET RATE-----
Should be on what the buyer and lender have agreed on and it should not exceed that
amount.
Federal law dictates that an addendum addressing the possible presence of lead-based
paint and lead based paint hazard be attached to the purchase agreement when the
house is being so that was built before?
Prior to 1978.
Earnest money is to be deposited?
By the close of the escrow agent's second business day following the signing of the
agreement.
By the end of the 2nd business day after the effective date. days of the effective date of
the contract.
If the seller furnishes the existing survey to the buyer, but it is not acceptable to the
buyers lender, the cost of the new survey may be at whose expense?
The Buyer
Which form is used for the owner to tell the buyer about known problems with the
property?
Sellers disclosure of property condition.
The notice about obtaining an abstract or title policy is a required notice from?
Buyer's broker
When I licensees using a builder's contract or a form prepared by an attorney that is not
promulgated by TREC, what is the wisest way to notify the buyer about title insurance or
abstract.?
OP-C Notice to prospective buyer - Suggest that he get an abstract or a title insurance
prior to closing - TAR - Buyer's Rep
Buyer's Agent is known as the?
Selling Agent
Which of the following is not true about paragraph 11 special provisions?
Paragraph 11 special provisions calls for:
Insert only factual statements and business details to the sale. TREC prohibits licensee
Exam 2023 with complete solution
Which of the following is an example of a Bilateral contract?
A Promise in exchange for a promise - Purchase Contract.
Unilateral Contracts - Listing Agreement, Buyer's Rep, Option Contract
Who is responsible for filling in the effective date, who, when & what?
Broker. Between the buyer and the seller, The date on which the communication was
made. The date of initialing and signing of the parties. The last party to initial/Sign fills in
the day. Broker. Last party to accept must communicate back to other party & fill in the
date
What is a legal proceeding brought by a party to a contract against another party to
compel action called for in the agreement?
Breach of a contract, one-party defaults, sues for specific performance, seek other relief
- arbitration, mediation, injunction to sue for compensatory Damages.
If a seller fails to provide the buyer with the seller's disclosure of property condition as
required by Section 5.008 of the Texas Property Code, what is the status of the
purchase contract?
Voidable at the option of the buyer. Voidable by buyer any time prior to closing and the
earnest money will be refunded to the buyer.
Which term identifies the substitution of a new contract for an existing contract?
Novation
When using a Power of Attorney to transfer title to real property?
Attorney-in-fact - Legal description and the subject of the authority
Who must convey to the principal all known information that would affect the principal's
decision to accept or reject offers?
Licensee - the listing agent/selling agent
When a legally enforceable promise is exchanged for a legally enforceable promise?
It is a Bilateral Contract.
If the seller has already sent a counteroffer to a prospective buyer and then receives
another offer that is even better, the seller:
Withdraw the counteroffer first then consider new offer
Which law requires the contract for real property to be in writing and signed to be
enforceable?
Statute of Frauds
To have a valid real property contract, something of value must be exchanged. This is
called:
Consideration
When may a potential purchase's offer to buy real estate be withdrawn?
at any time before it's accepted
Which of the following is NOT addressed by a TREC-promulgated contract?
Lease with an option to purchase. Lease purchase - new Condo contract
When is a financing addendum not required?
When the buyer pays in cash. When third financing addendum is waived
, Items that are preprinted in paragraphs 1 and 2 of the contract include all the following
except?
Exclusions
When will the third party financing addendum credit approval not be used?
1. all cash
2. When Third Part Financing contingency is waived
Which addenda will the Purchaser use when purchasing a property for cash?
None- no addendum will be used.
Which addendum is commonly used in a transaction involving a 90 percent fixed rate
loan with PMI?
Third party financing addendum.
What form is used if the buyer wants the seller to leave the refrigerator with the home
after closing?
Non-- Reality items addendum
In Third party financing addendum for credit approval, what should the Cap On interest
rates?
MARKET RATE-----
Should be on what the buyer and lender have agreed on and it should not exceed that
amount.
Federal law dictates that an addendum addressing the possible presence of lead-based
paint and lead based paint hazard be attached to the purchase agreement when the
house is being so that was built before?
Prior to 1978.
Earnest money is to be deposited?
By the close of the escrow agent's second business day following the signing of the
agreement.
By the end of the 2nd business day after the effective date. days of the effective date of
the contract.
If the seller furnishes the existing survey to the buyer, but it is not acceptable to the
buyers lender, the cost of the new survey may be at whose expense?
The Buyer
Which form is used for the owner to tell the buyer about known problems with the
property?
Sellers disclosure of property condition.
The notice about obtaining an abstract or title policy is a required notice from?
Buyer's broker
When I licensees using a builder's contract or a form prepared by an attorney that is not
promulgated by TREC, what is the wisest way to notify the buyer about title insurance or
abstract.?
OP-C Notice to prospective buyer - Suggest that he get an abstract or a title insurance
prior to closing - TAR - Buyer's Rep
Buyer's Agent is known as the?
Selling Agent
Which of the following is not true about paragraph 11 special provisions?
Paragraph 11 special provisions calls for:
Insert only factual statements and business details to the sale. TREC prohibits licensee
